Phone firms shift focus to post growth

Phone firms shift focus to post growth | Daily Nation | Jevans Nyabiage

Mobile phones are slowly starting to replace personal computers in sub-Saharan Africa, where a PC is still quite expensive.

Mobile phone service operators are betting on data to grow their revenues as income from voice nears saturation.

Telecom research firm, Frost & Sullivan says data services is the next kid on the block for mobile phone firms if they have to register continued growth.

This, the firm says, is because mobile phones are no longer seen as a tool for basic phone calls and text messages only.

The just-released annual results for operator MTN confirm the growing role of data services for African mobile firms.

The group reported that approximately 15 per cent of its revenue last year came from data.

Frost & Sullivan’s ICT analyst Silvia Venter says this is an indication that the days of data consisting only of basic SMSs and accounting for less than 10 per cent of an operator’s revenue are gone.

She says mobile phones are slowly starting to replace personal computers in sub-Saharan Africa, where a PC is still quite expensive.

In Kenya, Safaricom recently said it is shifting its over-reliance on voice which is reaching saturation with new frontiers like data and value added services, which it bets to grow its future revenues.

Other operators

According to chief commercial officer Peter Arina, over the past three years the firm has invested about Sh7.5 billion in a bid to establish a cross-section of technologies aimed at positioning the firm as a serious data player.

Although there are no public figures on the uptake of data for the other operators, their aggressive marketing for the same points to the ongoing battle.

Telkom Kenya bets on its fixed line to increase data solutions while Zain Kenya recently signed agreements with 45 telecoms operators around the globe to allow it expand international roaming coverage for data services.

Ugandan Google Maps Launched Featuring Entebbe and Kampala

Kato Mivule | March 1st 2010

An interesting development as Ugandan maps become digitized. Google is surely becoming a force in the Information Technology Revolution in Africa…

Uganda: Google Launches Maps | AllAfrica| Sylvia Nankya |24 February 2010
Kampala — Detailed maps of Kampala and Entebbe are now accessible on Google Maps through any web browser. The maps can also be accessed on data enabled mobile handsets. They come with both a satellite and a terrain view of the cities. Kenya and South Africa were the first beneficiaries of the Project which has now extended to 29 cities across Africa. “Google Maps isn’t just a searchable digitised maps helping you to find a local place, service or product – it is about making information with a geographical dimension available to everyone” Rachel Payne Country Manager Google Uganda said recently. Google believes that more accurate local information can greatly improve the breadth of information available about a given area and in turn can help efforts to bolster tourism and business investment. Businesses can also benefit

Google Map of Entebbe

from the Street View technology by embedding Google maps directly into their site for free, helping them to promote a chain of hotels or raise awareness about a local library or restaurant, Payne said. She added that the service will give tourists a taste of the variety that Uganda offers, and a chance to research their holidays in advance. The map data includes a substantial amount of user generated content provided via Google Map Maker. The Map Maker allows users to locate, draw, label and provide attributes for local map features, such as roads, parks, or rivers, turning local users into “citizen cartographers.” Payne allays fears that the maps could pose a security threat to the cities. “The Information we are using on Google is approved and available to every citizen, she said.

Is Bharti Airtel’s Zain Deal Good For Africa? Maybe Not

Kato Mivule | February 16, 2010

Bharti is positioned to take over Zain assets in Africa and that includes operations in Uganda. However, Bharti failed at gaining access to Africa’s Telecom Boom by taking over MTN assets in Africa. Bharti then is reported to have borrowed money to secure the Zain assets in Africa. The translation of this is might mean restructuring and more of a profit driven ideology that might sacrifice employees and African indigenous talent in the short term. Yet still Bharti Airtel will bring with it innovation in the area of mobile applications and probably move Africa towards fully utilizing “Africa’s new PC”, as one blogger refereed to the mobile phone phenomenon in Africa.

Bharti AirTel Logo

Zain Sees $5 Billion Profit From Africa Unit Sale | Businessweek
Feb. 16 (Bloomberg) — Zain, Kuwait’s biggest phone company, said it expects a return of as much as $5 billion from selling most of its African operations to Bharti Airtel Ltd. in a deal that would almost halve its assets…Bharti, South Asia’s biggest mobile-phone company, and Zain said yesterday they entered into exclusive talks under which the Indian company would buy the African assets for $10.7 billion. Bharti will pay $10 billion when the deal is completed and the rest a year later, Zain said in a statement on the Kuwait Stock Exchange Web site today. The transaction excludes Zain’s operations in Sudan and Morocco….Bharti is seeking Zain’s African business for access to an estimated 42 million customers across 15 African countries from Nigeria to Uganda. Bharti’s third attempt to enter Africa highlights billionaire Chairman Sunil Mittal’s ambitions to expand overseas as competition intensifies at home, where call rates have fallen to less than a penny a minute. Mittal has tried to gain access to other fast-growing markets, including a second failed attempt last year to buy South Africa’s MTN Group Ltd. for about $23 billion.

Zain Logo

Bharti eyes debt financing for Zain Africa buy – sources | Money Control
Bharti Airtel, which has offered USD 10.7 billion for Kuwaiti telecom Zain’s African assets, is likely to finance the majority of the deal’s purchase price with foreign currency loans, three people familiar with the matter said…Zain, which is selling its telecoms operations in 15 African countries to Bharti, said on Tuesday the deal included USD10 billion to be paid at completion and the remaining USD 700 million by the end of the year…Separately, the NDTV Profit television channel said Bharti was considering a rights issue to help fund the deal. However, at the time of its ultimately thwarted merger talks with South Africa’s MTN Group last year, Bharti had said there was no plan for any rights issue. A Bharti Airtel spokesman declined to comment on Tuesday on how the firm would fund the deal. Standard Chartered and Barclays are advising Bharti Airtel on the merger and its funding, one of the sources told Reuters.

Broadband brings new hope to Africa’s poor, elderly- ITU

The East African|February 8 2010

Effective delivery of essential services in Africa lies with the deployment of broadband networks, according to the International Telecommunications Union (ITU), a United Nations agency for information and communication technology.

During the recently concluded African Union Summit held in Addis Ababa Ethiopia, the agency appealed to African countries to focus on broadband networks as the transformational technology that will aid in the efficient use of energy, management of healthcare in poor, ageing and isolated population as well as the delivery of the best education to future generations.

ITU secretary general Hamadoun Toure said broadband is the most powerful tool to drive global social and economic development as well as accelerate the realisation of the UN Millennium Development Goals.

He, however, noted that the cost of broadband must be made affordable and accessible in order to benefit Africa.

“While the technology exists, the benefits are yet to be realised in most countries. This is because broadband networks can never deliver on their full potential until they provide each citizen with fast, affordable access,” said Dr Toure.

The ITU boss told the AU meeting, whose theme was “Information and Communication Technologies (ICTs) in Africa: Prospects and Challenges for Development,” that broadband networks must be regarded as basic national infrastructure, just like transport, energy and water networks.

Dr Toure added that Africa has to “act as one in its approach to formulating its Vision 2020,” during this decade — whose theme is premised on the idea of an integrated Africa through the utilisation of ICT.

Vision 2020 will address various strategies including common codes and spectrum management, harmonisation of policy and regulatory frameworks and low cost continental roaming.

It will also address affordable rural access and direct inter-continental links through fibre optics and satellite.

“In general, it will tackle key global issues related to ICT such as cyber security, cyber peace and emergency communications especially during natural disasters, content development through e-health, e-commerce, e-government, e-education and e-agriculture,” he said.

In order to encourage investment in the continent’s ICT sector, the ITU boss said there is “real opportunity to use all the potential of public-private partnerships (PPPs).”

The driver to new investments in the ICT sector, he added, would be a policy and regulatory framework conducive to competition and growth, as well as capacity building and training on policy issues in the continent.

On the levels of mobile tele-density (the number of telephone lines per 100 people), Toure said at the start of last year, the levels across Africa were at 38 per cent of the population but had improved to 42 per cent.

He, however, said the Internet user base, which by 2008 had grown to 48 per cent, was still low with only 8 per cent of the continent’s 840 million people having access.

Jean Ping, chairperson of the AU Commission highlighted different projects the body had launched in various fields including ICT, infrastructure, energy, agriculture and education.

“The Commission has also made progress in driving the science, technology and information society. An example is the tele-medicine facility opened at the AU clinic during the Summit through partnership with the Indian government,” said Ping.

The tele-medicine facility, financed by the Indian government, is part of the Pan African e-Network project, which is meant to enhance Africa’s capacity by imparting quality education to students and providing tele-medicine services, tele-education and video-conferencing as well as voice services for heads of state.

South Africa’s Internet Users Projected to Double in 5 Years

Kato Mivule January 20, 2010

Though the projections look promising on the side of PC Connectivity, much focus could be placed on smartphones and Notebooks. Personally I do not think that PC Connectivity is the future. The number of Cell Phone subscribers is 300 Million and beyond currently in Africa. Therefore smartphones and Notebooks have a far brighter future in Africa. Education could be focused on how best to utilize smartphones to solve a number of problems in Africa…

Web: SA’s internet users could double by
2015
SA Business Report January 15, 2010 By Thabiso Mochiko

South Africa’s internet users could double to 10 million by 2015
as the the cost of telecommunications falls and the number of personal computers
and smartphones connected to the Internet grows, Arthur Goldstuck, the managing
director of World Wide Worx, said on Friday.

The firm announced
this week that internet users in the country rose by 15 percent to 5.3 million
at the end of 2009 and could reach 6 million by the end of
2010.

Goldstuck said the growth to 10 million users would come from
a combination of an estimated 8 million computers with a internet connection by
2015 and increase in the number of consumers owning smartphones that have access
the internet.

“It will take a couple more years before mobile
internet users outnumber PC-based internet users,” he
said.

Goldstuck added that for internet usage to increase limits on
internet use needed to disappear completely or at least be made far less
restrictive.

“One of the areas of most dramatic usage growth
worldwide right now is in video material online, but South Africa’s data
restrictions mean we are kept from becoming part of that trend. It will take
several years for online video to take off to the same extent in South Africa,
but lifting data restrictions will open that market immediately,” he
said.

Barriers to entry should also be lowered including the cost
of access to asymmetric digital subscriber line or ADSL, which is dominated by
Telkom.

“A stronger push needs to be made for computer literacy,
starting in schools, but also extending to adult education in disadvantaged
communities,” he concluded. – I-Net Bridge